Saving rates bounce back to 5 per cent

Savers can achieve a decent return — but only if you tie up your money Tentative signs of recovery in the savings market are starting to appear with the return of 5 per cent interest rates. Several fixed-rate bonds are offering 5 per cent returns for the first time in eight months — but only for savers prepared to lock away their money until 2014. Despite the Bank of England base rate hovering at the historically low rate of 0.5 per cent, returns on five-year fixed-rate bonds have increased by 1.13 per cent since March, according to Moneyfacts.co.uk. Michelle Slade, an analyst at the financial website, says: “Volatility in the money markets is prompting providers to turn to their savings book to fund their lending activities. To attract savers from their competitors, providers are offering ever-increasing rates. “Savers are... [read full story]                    

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